Digital Technologies Can Reduce Emissions by Up to 20%: WEF Study

Digital technologies can reduce greenhouse gas emissions by up to 20% by 2050 in the three highest emitting sectors - energy, mobility and materials, according to WEF. 

As businesses and governments respond to global calls for action to tackle climate change, significant efforts must be put in place to achieve net zero. Still, a large gap remains between commitments and action. 

Estimates of current commitments indicate a projected emissions reduction of merely 7.5% when a 55% reduction is needed. Closing this gap will require high-emitting sectors to rethink efficiency, circularity and sustainability.

Energy, materials and mobility constitute the highest emission sectors, contributing 43%, 26% and 24% respectively of total emissions in 2020.

These industries can use four digital technologies to decarbonise their operations and value chains -- foundational technologies such as big data analytics; decision-making technologies such as artificial intelligence/machine learning; enabling technologies such as cloud, 5G, blockchain and augmented reality; and sensing and control technologies such as internet of things, drones and automation, the WEF said.

According to the estimates, digital solutions can reduce emissions by up to 8% in the energy sector by enhancing carbon-intensive processes, improving energy efficiency in buildings, and deploying and managing renewable energy.

In the materials sector, digital solutions can improve mining and upstream production and enhance efficiency and circularity of materials, reducing up to 7% of greenhouse gas emissions by 2050.

The mobility sector can reduce emissions by up to 5 per cent by supporting the transition from fossil fuel combustion to green molecules, improving supply chain efficiencies and optimising travel routes.